Market Talk - Friday, July 30

ASIA:

A report published by the US-based Peterson Institute for International Economics said that China’s purchases of U.S. goods are still falling short of trade agreement levels, even as overall Chinese imports from the U.S. have surged. In January 2020, before the coronavirus pandemic and under former U.S. President Donald Trump, China agreed to buy at least $200 billion more in U.S. goods and services over the next two years, relative to the 2017 level. Known as the phase one trade deal, the purchase agreement included specific agriculture, energy and manufactured products. However, as of June, both Chinese and U.S. government data indicated that China had bought less than 70% of the year-to-date target, according to estimates from Peterson Institute senior fellow Chad P. Bown. The shortfall comes as trade between the two countries has grown, according to Chinese customs data. China’s imports from the U.S. in the first half of the year rose to $87.94 billion, up 55.5% from the same period in 2020 and up nearly 49.3% from the first six months of 2019.

Japan’s factory output jumped in June and job availability rose to the highest level in nearly a year, data showed, a sign robust overseas demand was offsetting the drag to consumption from the coronavirus pandemic. Industrial output rose 6.2% in June after a sharp 6.5% drop in May, data showed on Friday, marking the highest growth since July last year and recovering to pre-pandemic levels. The increase, which exceeded a median market forecast for a 5.0% gain, was driven mainly by a 22.6% surge in auto production as manufacturers sought to make up for the slump in May. But a spike in domestic infections to new records and a lingering global chip shortage adds to woes for the world’s third largest-economy, dashing policymakers’ hopes for a strong rebound in July-September growth, analysts say.

The major Asian stock markets had a negative day today:

  • NIKKEI 225 decreased 498.83 points or -1.80% to 27,283.59
  • Shanghai decreased 14.37 points or -0.42% to 3,397.36
  • Hang Seng decreased 354.29 or -1.35% to 25,961.03
  • ASX 200 decreased 24.80 points or -0.33% to 7,392.60
  • Kospi decreased 40.33 points or -1.24% to 3,202.32
  • SENSEX decreased 66.23 points or -0.13% to 52,586.84
  • Nifty50 decreased 15.40 points or -0.10% to 15,763.05

The major Asian currency markets had a mixed day today:

  • AUDUSD decreased 0.00518 or -0.70% to 0.73493
  • NZDUSD decreased 0.00354 or -0.50% to 0.69796
  • USDJPY increased 0.30000 or 0.28% to 109.72
  • USDCNY increased 0.00343 or 0.05% to 6.46121

Precious Metals:

  • Gold decreased 7.45 USD/t oz. or -0.41% to 1,820.51
  • Silver decreased 0.02 USD/t. oz or -0.06% to 25.515

Some economic news from last night:

Japan:

Jobs/applications ratio (Jun) increased from 1.09 to 1.13

Unemployment Rate (Jun) decreased from 3.0% to 2.9%

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